The Display Text action allows you to display the resulting text in a floating window or Notification.

A common question is when should you use each? Each action has its advantages and disadvantages:

The Type Keystroke action is just like typing yourself, so you can type any keystroke and any number of them, but it can be tedious to create a sequence of keystrokes in a macro.

The Insert Text by Typing action is also just like typing yourself, similarly permitting characters like tab/return and maintaining the current style in the program into which you are typing, but it is slow for large amounts of text and can't type exotic characters like Emoji.

The Insert Text by Pasting action is fast for large text and can include any kind of characters, as well as styles like bold and italic, but it overwrites your clipboard and its handling of styles may occasionally not conform to your expectation.

So you should use Type Keystroke when:

You are entering a single keystroke and perhaps need particular control over the exact keystroke typed, or

The keystroke includes Command or Control (and sometimes Option).

Use Insert Text by Typing whenever:

The text consists of plain text characters that can be typed on the keyboard, and

The text is relatively short (up to say 30 or 40 characters), or

You want to use characters like Return or Tab to perform actions like moving to the next field.

Use Insert Text by Pasting when:

You don't mind the clipboard being overwritten, and

The text is long, or

The text contains exotic untypable characters, or

The text contains returns or tabs which you don't want to perform actions like moving to the next field.